Well-known car seat manufacturer, Recaro has declared bankruptcy

Car seat manufacturer Recaro Automotive GmbH has filed for bankruptcy. On Monday, July 29, the Esslingen District Court placed the troubled auto supplier under provisional self-administration. The measure will allow an appointed administrator to oversee operations to continue business operations.

Headquartered in Kircheim/Teck, Baden-Württemberg, Germany, Recaro Automotive GmbH supplies seats to automotive OEMs and several high-performance vehicle manufacturers.

The bankruptcy filing has raised concerns about the company's future and its workforce. IG Metall, the labor union was surprised with the insolvency application.

"It is unclear what this means for the 215 employees of Recaro Automotive GmbH in Kirchheim," stated IG Metall. 

Employees have made significant sacrifices in several years, including wage concessions, to help keep the company afloat. Despite these efforts, the company has been unable to recover financially. The union is calling for a meeting with company representatives to discuss the future of the company and its employees. All options to preserve jobs and find a sustainable solution are expected to be explored.

Recaro Automotive has been owned by investment firm Raven Acquisitions LLC since January 2020. The group also operates facilities in Michigan, USA and Higashiomi, Japan; these operations will not be affected by the filing according to their official Philippine representative. According to the company website, it employs approximately 425 employees worldwide.

Recaro Automotive is not the only automotive supplier in trouble. Wheelmaker BBS Autotechnik GmbH also filed for insolvency last July 26; its fifth.

Recaro Group, which operates its aircraft seating and e-gaming businesses; as well as, the child seat licensee are all unaffected by the filing.

Update: Recaro Philippine distributor Excellar Automotive has clarified that Recaro Automotive HQ in USA and Recaro Automotive Japan are not affected by the insolvency filing. "We import almost all of our products from Japan and will continue to do so. Supplies from Recaro Japan are also not affected. The only products from Germany that we import (just because Japan does not make them yet) are the Pole Position and Podium racing seats," said Excellar Automotive in statement.

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